Analysts Have Made A Financial Statement On Indigo Paints Limited's (NSE:INDIGOPNTS) Full-Year Report

Indigo Paints Limited (NSE:INDIGOPNTS) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of ₹13b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.6% to hit ₹30.87 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Indigo Paints

After the latest results, the eight analysts covering Indigo Paints are now predicting revenues of ₹15.4b in 2025. If met, this would reflect a decent 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 12% to ₹34.79. Before this earnings report, the analysts had been forecasting revenues of ₹15.6b and earnings per share (EPS) of ₹37.50 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at ₹1,572, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Indigo Paints analyst has a price target of ₹1,850 per share, while the most pessimistic values it at ₹1,325. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Indigo Paints shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Indigo Paints'historical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although Indigo Paints is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Indigo Paints analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Indigo Paints' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.